Quarter Two Middle Market M&A Report 2022

Deal volume in the global mergers and acquisitions market has declined in Q2-22 after the record level of activity observed in 2021. With soaring inflation, supply chain uncertainty and geopolitical tensions lingering, total deal volume decreased 15.9% from prior quarter and 13.7% from prior year. Similarly, the total value of lower middle market deals decreased to $80.7 billion and average transaction value decreased 29.7% on a q/q basis. While the M&A market reaped the benefits of low interest rates in 2021, looming rate hikes by the Fed and rising inflation will likely lower valuations going forward.